Stocks To Buy: 3 Stocks Where Sharekhan Has A “Buy” Call

Markets are once again heading to 60,000 points on the Sensex, thanks to a good rally in banking stocks. Analysts believe that the markets have the potential for a further upside from the current levels. Here are 3 stocks that Sharekhan has a buy call on.

PBCL: Buy for 20% upside on the stock

According to Sharekhan, capacity expansion and favourable dynamics of carbon black (China capacity closures) provide growth opportunities for Indian players. "Thus, we expect PCBL's EBITDA and PAT to each post a 14% CAGR over FY2022-FY2025E despite high growth of 26%/37% y-o-y in FY2022. PCBL is undertaking capacity expansion plans to cater to rising demand and the same is expected to drive long-term growth. We maintain a Positive view on PCBL and expect a 20% upside potential from current levels. At the CMP, the stock is trading at an attractive valuation of 8.8x its FY2024E EPS, which is at a discount to its historical average PE multiple. Moreover, low net D/E ratio of 0.2x and healthy dividend yield of 3-4% provides comfort," the brokerage has said.

Gland Pharma

Gland Pharma reported yet another weak quarter with revenue and PAT down by 3% and 20%, respectively. Unfavourable geographical and product mix, supply-side constraints, cost inflation and overall weak macro-economic sentiments dragged performance. However, the challenges are expected to be transient in nature and medium-term prospects are intact led by a strong product pipeline and entry into newer markets. Stock price has corrected by ~41% in last six months due to said challenges which the management expects to ease out gradually and could support growth in the medium. "At the current market price, the stock trades at 29.8x/23.6x its FY2023E/FY2024E EPS. With a favourable riskreward after sharp correction in the recent past and expected good growth in the medium term we retain our Buy recommendation on the stock with a revised price target of Rs. 2,260," Sharekhan has said.

Ramkrishna Forgings: Buy with a target price of Rs 279

According to Sharekhan, Positive commercial vehicles demand in India, North America, and Europe are highly beneficial for the company such as RKFL, which has a strong domestic and export revenue mix of 55:45 in niche markets. The Indian government is offering various incentives such as PLI scheme, Make-in-India, and Atmanirbhar Bharat Mission, which will provide a strong platform for automobile suppliers such as RKFL. We believe RKFL has a strong global footprint and is serving leading OEMs, not only in the automotive segment but in other sectors as well. "We expect RKFL to gain market share internationally, given its ability to provide an attractive value proposition to its customers. The stock is available at attractive valuation multiples of P/E of 10.1x and EV/EBITDA of 5.7x on its FY2024E. We reiterate our Buy rating on the stock with a revised price target of Rs. 279," the brokerage has said.

Disclaimer

The above stocks were picked from the brokerage reports of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.